Qatar to invest hundreds of millions in Lebanon’s electricity sector and help return Syrian refugees

Qatar Announces Major Investment Package to Boost Lebanon’s Recovery

Qatar has pledged hundreds of millions of dollars in investments to help Lebanon address its deteriorating electricity infrastructure, support its military, and assist with the repatriation of Syrian refugees, officials announced Monday in Beirut.

Mohammed bin Abdulaziz Al-Khulaifi, Qatar’s minister of state for foreign affairs, revealed the substantial aid package following meetings with Lebanese Prime Minister Nawaf Salam and President Joseph Aoun. The funding will be provided through the Qatar Fund For Development.

The energy sector will receive particular attention, with Qatar committing a $40 million grant plus an additional $360 million for electricity projects expected to benefit approximately 1.5 million Lebanese citizens. This investment targets one of Lebanon’s most critical infrastructure problems.

Lebanon’s state electricity company has been a significant source of the country’s debt, accumulating roughly $40 billion in losses over decades due to outdated infrastructure and an oversized workforce. Most Lebanese receive only a few hours of government-supplied electricity daily and rely on expensive private generators that contribute substantially to air pollution.

Previous Qatari attempts to improve Lebanon’s electricity sector yielded limited results, but the current investment comes at a time when Lebanon’s newly elected leadership has pledged to tackle endemic corruption that has historically undermined infrastructure projects.

“This investment represents our confidence in Lebanon’s reform agenda under its new leadership,” Al-Khulaifi stated during the announcement in Beirut.

The aid package extends beyond electricity. Qatar will allocate $20 million to facilitate the return of 100,000 Syrian refugees from Lebanon to their homeland. The program includes provisions for suitable housing and financial support covering food and medical needs for three months after repatriation. Al-Khulaifi noted that the Syrian government, which maintains positive relations with Qatar, has committed to facilitating this process.

According to Lebanon’s Minister of Social Affairs, Haneen Sayed, half a million Syrian refugees have already returned to Syria in 2025. Lebanon has hosted an estimated 1.5 million Syrians displaced by their country’s 14-year conflict, representing nearly a quarter of Lebanon’s 6 million population at its peak, with many crossing the border without official registration.

Qatar also pledged ongoing support for the Lebanese Armed Forces, which Al-Khulaifi described as “the basis for security and stability in the country.” This continued military assistance takes on heightened significance following the recent 14-month Israel-Hezbollah conflict that has altered Lebanon’s security landscape.

The Qatari investment comes as Lebanon works to rebuild diplomatic relationships with Gulf nations after years of tension over Hezbollah’s substantial influence in the country. The Iran-backed group has been significantly weakened by the prolonged conflict with Israel and recently called for improved relations with Saudi Arabia.

Unlike some regional powers, Qatar has maintained relatively friendly relations with Lebanon throughout its crisis period and has served as a mediator in domestic and international political disputes. The gas-rich Gulf state is also a key partner in consortia exploring Lebanon’s offshore natural gas resources, potentially adding a strategic dimension to this latest investment package.

Lebanon has struggled with a devastating economic crisis since late 2019, widely attributed to decades of corruption and mismanagement by the country’s political establishment. The collapse has wiped out the value of the local currency, depleted foreign reserves, and pushed much of the population into poverty.

Financial analysts view Qatar’s investment as potentially catalytic but note that Lebanon requires comprehensive structural reforms to address the root causes of its fiscal challenges.